According to a report from CNBC, I bonds are set to deliver a record-setting 9.62% annual rate until October 2022 — the highest since 1998.

The Department of Treasury made the groundbreaking announcement on Monday. The hike is meant to keep pace with the March consumer price index data — which showed an annual inflation growth of 8.5%.

According to CNBC, I bonds “don’t lose value and earn monthly interest based on two parts, a fixed rate and a variable rate, changing every six months.”

The Department of Treasury said that the variable rate is 9.62% through October of this year, but the fixed rate will stay at 0%.

Ken Tumin, founder and editor of DepositAccounts.com, told the outlet that the fixed rate stays the same for the 30-year life of the bond, meaning someone who purchased I bonds with a higher fixed rate could possibly circumvent inflation for at least six months.

Source:

Nearly risk-free I bonds to deliver a record 9.62% interest for the next six months